By Andrew Augustyniak | Neighborhood Loans
In recent times, we’ve witnessed a notable surge in Investor Debt Service Coverage Ratio (DSCR) loans, and it’s no surprise that our savvy real estate investors in Arizona are keenly exploring opportunities beyond state lines. Augustyniak Lending Team at Neighborhood Loans, your preferred lender here at AZREIA and partner in real estate ventures across forty-one different states, has been at the forefront of this trend, facilitating a seamless transition for investors looking for properties that offer comparable or even higher cash flows while being priced more competitively.
As Arizona’s real estate market experiences a significant upswing in property prices, many of our valued investor clients have chosen to cast their sights on opportunities in other states. Why, you ask? The answer lies in the appeal of acquiring properties in different parts of the country at a lower cost while maintaining or potentially enhancing their rental income streams. Many of our clients are finding opportunities back east in which the prices may be 50% less compared to AZ, with the same or greater cash flow.
At Neighborhood Loans, we specialize in DSCR loans, a financial tool that has proven to be a game-changer for our investor community. These loans are designed to simplify the qualification process by relying on rental income rather than tax returns. Notably, many of our investors are finding that their rental income doesn’t need to cover the entire mortgage payment to secure financing. This feature is a significant boon for investors, as it allows them to:
- Unlock Greater Investment Potential: By bypassing the need for personal tax returns, investors can secure financing based on the property’s rental potential. This opens doors to greater investment opportunities without the constraints of traditional lending criteria.
- Diversify Across States: With the ability to secure financing based on property rental rates, investors can diversify their portfolios across different states, taking advantage of varying market conditions and opportunities.
As we navigate the ever-evolving landscape of real estate investment, the rise of Investor DSCR loans offers a strategic advantage for those looking to expand their horizons. At Neighborhood Loans, we stand ready to assist our investors in seizing these opportunities, whether they choose to stay locally in Arizona or venture out to other states.
In this environment of shifting market dynamics, our commitment remains unwavering: to provide tailored financial solutions that empower our clients to make informed and profitable real estate investments. Stay tuned for more insights and updates as we continue to explore exciting trends in the world of real estate. Together, we’ll build prosperous investment portfolios, one property at a time.